BOSS TO SELL YANKS? NEWSDAY SAYS CABLEVISION DEAL POSSIBLE

March 19, 1998

In a deal "that would stun the baseball world and give
Cablevision an unmatched sporting empire" in N.Y., the
company "has entered into discussions with George
Steinbrenner about the possibility of buying the Yankees,"
according to Heyman & Zipay of NEWSDAY. Cablevision Chair
Charles Dolan confirmed yesterday that he has met with
Steinbrenner on several occasions over the past few months
and discussed "all kinds of possibilities" and scenarios
regarding a potential sale. Another source said that the
sides have been talking about a sale for six months. While
neither Dolan nor Steinbrenner would discuss a price range,
two sources familiar with the discussions said that the
potential deal would bring Steinbrenner and his partners
"well in excess" of $500M, "perhaps close to double the Fox
purchase price" for the Dodgers. Dolan said that
Cablevision, owner of the Knicks and NHL Rangers, is
"absolutely" interested in buying the Yankees, but "there
has been no real progress with any of the different ideas
that have surfaced" (Heyman & Zipay, NEWSDAY, 3/19).
GEORGE ON THE RECORD: Steinbrenner yesterday did not
"completely rule out" the possibility of selling the
Yankees: "We've talked about a continuing relationship with
them. Their TV contract with us [on MSG] is up in two
years, and there are all sorts of rumors flying around
because of that. There is nothing definitive. Naturally,
if there is an interest in maintaining our relationship it
stands to reason they'll have interest in extending the
contract or owning the team." If the sale were to happen,
sources say that the sides are discussing the possibility of
Steinbrenner being paid "an annual management fee of at
least" $5M to help run the club for five years after the
sale. However, sources said that "there are still very real
obstacles" to a sale, such as Steinbrenner's tax bill if he
were to sell at $500M-plus profit. The situation "is
further complicated" by the partners' decision to borrow
against future earnings stemming from Steinbrenner's $486M
MSG TV deal. Meanwhile, Steinbrenner also said that he has
heard "from his league sources" about interest in the team
from Westinghouse, CBS's parent company (NEWSDAY, 3/19).